Where does DCR list come from???

System

In the teamsite gui when a new dcr is selected from the drop-down menu, it presents a list of the directory structure at some point in your site, Where does it read this from. I made a new dir for a new template but when I went to select a dcr the new category wasn't in the list that poppped up! I tried submitting it to staging and it still didn't show up in the list that popped up! Where does Teamsite get this list from????